According to the SBA of America, credit card fees are one of the three largest expense items on a merchant’s income statement and the least controlled. Vet2Gov operates with virtually every POS (point of sale) system in the United States, making conversions quick and easy.

Opening up a merchant account is a great way to expand a business. In a world where many individuals and businesses rely on credit cards for their transactions, having a merchant account makes it easier to do business and bring in more customers.

Even if you’re a high-risk merchant, such as a telemarketer, e-commerce, or a travel merchant, a merchant account is still worth the legwork it takes to open. The longer a business has been operating, the better the options are for dealing with the banks and merchant processors that provide these accounts. Business experience shows that the business owner knows how to prevent fraud and manage payments from customers.

One of the first things considered is credit history. Credit reporting bureaus can give business owners a good idea of where they stand before opening a merchant account. If there have been past issues with bankruptcies, it is important to be upfront about it. Credit issues are a matter of public record and will be discovered. By owning up to problems and addressing changes going forward, a business owner demonstrates credibility and adaptability. Some fees and special account requirements might apply moving forward, but it will be worth it in the long run. Bringing in more customers creates growth and will balance out any fees that might be incurred with a merchant account. All of which are tax deductible.

There are a number of credit card processors, so make sure to do some research as to what these processors offer and what the costs will be. Some of the important things to ask about are discount rates, transaction fees, types of equipment, monthly minimum fees, reserve fees, and chargeback fees. List what each credit card processor requires and decide which of these rates and fees are best for the business.

Having a merchant account and being able to process credit card transactions makes a business more professional and better able to deal with the modern consumer.
It’s an important and worthwhile step in growing a business.

A high-risk merchant account offers solutions with no geographical restrictions and affordable options for those who may experience the following issues:

• A high level of, or an increase in, chargebacks
• Bad business credit or poor credit scores
• Having a merchant account application denied by a merchant processor
• Operating in an industry that is high-risk.
• The international merchant is conducting offshore business operations to countries outside of their home base.

How to simplify your high-risk merchant accounts

For those with low credit scores or bad credit, it’s possible to accept charges with a POS or e-commerce gateway. An account can also be set up using mail order or telephone order using comparable merchant rates.

Companies classified as a high-risk industry are not necessarily ensnared into offshore or aggregator accounts. There are options to stay with US accounts.

When companies are operating their business overseas, there are merchant accounts available, whereby, the acceptance of various currencies are available. This availability is not only convenient, but it also simplifies the process for merchants.

Local markets are the primary objective, as well as the specialty of the banks in the United States serving high-risk merchants.

Reserves and rates for high-risk merchants

It’s no mystery that high-risk merchants see high-rate charges. However, this doesn’t have to be the reality for every business. Often, merchant processors believe businesses are high-risk due to chargebacks, program of sale method, processing history, etc. The right bank can help merchants find the account services needed despite this reality. The majority of high-risk merchant accounts have merchant reserve requirements, so it’s critical to find a bank that will help merchants analyze this financial information. That way, merchants have a full understanding of these proposals.